Cboe Launches One-Day Version of VIX

The video discusses the VIX 1D index and its role in providing transparency in the market amidst the banking crisis. It highlights the significance of zero day options, which increase leverage without requiring margin. The VIX is less representative of actual market conditions, akin to calm water with turbulence beneath. The video warns of the risks associated with increased leverage and similar trading strategies, emphasizing the importance of monitoring the one-day VIX as part of the risk pattern.

What analogy is used to describe the relationship between zero-day trading and the VIX?

What risks are associated with increased leverage and risk in trading strategies?